"The market is very complex. It is pushed one way or the other in varying degrees as a result of individual decisions of millions of participants. Some of those participants are acting logically and others are acting emotionally...it is the volume which is giving us the real picture of the emotions in the marketplace. Price tells us what is happening, but volume tells us how it is happening."

"I just sold a stock for $23 that I bought last week for $18. What a high! That is the
pleasure of being a trader, being right. Taking a profit is great, but the money is not as important as the success. I think the best trader is the one who only uses the money to keep score. He treats trading as a challenge."

In Trading With Equivolume, we are going to be looking at some unique methods of analysis that can help to make trading more successful and therefore more fun. When I say traders I am thinking primarily of those who buy individual stocks and hold them for a period of days, or at most a few weeks. All the examples we look at will be concerned with that time frame. That is not to say the methodology is not applicable to other time frames, it is. But our emphasis will be on short term trading. If we can think of the market movements as consisting of tides, waves and ripples, we are going to be looking at the waves. Day traders may want to apply the ideas to the ripples. Long-term investors can look at the larger picture and use the methods to take advantage of the large tidal movements. In addition, we will not be looking at options trading, just the underlying stocks. But anyone wanting to trade options must be able to understand where the underlying stock appears to be headed. Every principle in the pages that follow is a tool for the options trader as well.

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